The Partnering for Success Feature in Chapter 9 Focuses on IConclude

question 28

Multiple Choice

The Partnering for Success feature in Chapter 9 focuses on iConclude, a company that set up a customer advisory board. The main point of the feature is:

• A) the proper time to set up a customer advisory board is just after a business has been launched
• B) the members of a firm's customer advisory board should be a diverse as possible
• C) a customer advisory board can be a good source of new product or service ideas
• D) the main purpose of a customer advisory board is to assess customer satisfaction
• E) setting up a customer advisory board before a business is launched can be a useful way of getting feedback while a product is being developed

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Definitions:

Operating Margin

A profitability measure calculated as operating income divided by revenue, showing the percentage of profits generated from operations before taxes and interest.

Variable Costing

An accounting method that only includes variable production costs (costs that change with the level of output) in the cost of goods sold and treats fixed costs as period costs.

Absorption Costing

A pricing technique that integrates all expenses related to production, such as direct materials, direct labor, along with both variable and fixed overhead costs, into a product's cost.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from a company's main business activities.